Real Estate Law UPDATED ACTUAL
Questions and CORRECT Answers
Decisions of trial courts are recorded and published, and are considered precedent for future
decisions. True or False? - CORRECT ANSWER -Flase
Skills used by paralegals in real estate practice include? - CORRECT ANSWER -
preparation of legal documents.
The air space immediately above the surface of privately owned land is owned by the
government. True or False? - CORRECT ANSWER -False
Which of these is considered real property? - CORRECT ANSWER -An acre of land
Which of the following is an ownership transfer that takes place upon the death of the previous
owner? - CORRECT ANSWER -Devise
Intangible personal property includes things such as televisions, air conditioners, and
dishwashers. True or False ? - CORRECT ANSWER -False
Under the feudal system, vassals paid money to the lord in exchange for the right to live on and
use a portion of the lord's land. True or False? - CORRECT ANSWER -True
Which of these is considered intangible personal property? - CORRECT ANSWER -A
copyright
A deed transfers ownership only to the property described in the deed. True or False? -
CORRECT ANSWER -True
,Which is the highest and best kind of estate an owner can have? - CORRECT ANSWER -
Fee simple absolute
Treatises are practice books published by state bar associations. True or False? - CORRECT
ANSWER -False
The rules on adverse possession - CORRECT ANSWER -vary from state to state.
No special language is required to create a fee simple absolute. True or False? - CORRECT
ANSWER -True
Soybeans produced by labor are considered real property. True or False? - CORRECT
ANSWER -False
The law of real property is generally governed by the - CORRECT ANSWER -law of the
state in which the real property is located.
An estate at will is restricted in its duration to a fixed period. True or False? - CORRECT
ANSWER -False
Life estates may be created by
deed will.
express agreement.
all of the answers are correct. - CORRECT ANSWER -All of the answers are correct
The transferor of real property is called a - CORRECT ANSWER -grantor
What kind of rights does an adjoining property owner to a river, stream, or natural lake have? -
CORRECT ANSWER -Beneficial rights
,A person can obtain title by adverse possession by camping in a state park for seven continuous
years. True or false? - CORRECT ANSWER -false
When a gift is complete, the gift is irrevocable. True or False? - CORRECT ANSWER -
true
Legal blogs are also called blawgs. true or false - CORRECT ANSWER -true
Most states interpret a conveyance without limitation as transferring a fee simple determinable to
the grantee. True or false? - CORRECT ANSWER -true
Rose bushes that grow in soil are considered real property. True or false? - CORRECT
ANSWER -true
mortgage loan - CORRECT ANSWER -Definition:Loan secured by real property.
Fannie Mae and Freddie Mac are privately owned corporations organized to provide a secondary
market for single-family and multifamily residential loans. True or false - CORRECT
ANSWER -true
What is the limit on the loan amount the VA will guarantee? - CORRECT ANSWER -25
percent of the loan amount
A graduated payment mortgage is a partially amortized loan. true or false - CORRECT
ANSWER -false
Commercial banks tend to keep mortgage loans in their portfolio through maturity. True or false
- CORRECT ANSWER -false
Depositors' accounts with commercial banks are insured by - CORRECT ANSWER -
FDIC
, Thrifts that survived the savings and loan collapse in the 1980s and 1990s were converted into
federal savings banks. true or false - CORRECT ANSWER -true
The primary market consists of lenders who originate mortgage loans for the purpose of selling
the loans to investors. true or false - CORRECT ANSWER -true
Mortgage banking companies originate mortgage loans for insurance companies, commercial
banks, pension funds, savings banks, and other investors. True or false - CORRECT
ANSWER -true
The monthly payments on a construction loan are amortized. true or false - CORRECT
ANSWER -false
The housing recession and mortgage crisis that started in 2007 caused an increased number of
loan defaults and financial solvency of banks. true or false - CORRECT ANSWER -true
In most cases, the Small Business Administration (SBA) - CORRECT ANSWER -
guarantees loans made by private lending institutions approved by the SBA.
In a straight-line amortized loan the payments become smaller as the loan matures. True or false
- CORRECT ANSWER -true
The secondary market consists of - CORRECT ANSWER -investors who purchase
mortgage loans
Fannie Mae is an example of a - CORRECT ANSWER -warehousing agency
Conduit lenders do NOT do which of the following? - CORRECT ANSWER -Hold
mortgages for the full term of repayment
Questions and CORRECT Answers
Decisions of trial courts are recorded and published, and are considered precedent for future
decisions. True or False? - CORRECT ANSWER -Flase
Skills used by paralegals in real estate practice include? - CORRECT ANSWER -
preparation of legal documents.
The air space immediately above the surface of privately owned land is owned by the
government. True or False? - CORRECT ANSWER -False
Which of these is considered real property? - CORRECT ANSWER -An acre of land
Which of the following is an ownership transfer that takes place upon the death of the previous
owner? - CORRECT ANSWER -Devise
Intangible personal property includes things such as televisions, air conditioners, and
dishwashers. True or False ? - CORRECT ANSWER -False
Under the feudal system, vassals paid money to the lord in exchange for the right to live on and
use a portion of the lord's land. True or False? - CORRECT ANSWER -True
Which of these is considered intangible personal property? - CORRECT ANSWER -A
copyright
A deed transfers ownership only to the property described in the deed. True or False? -
CORRECT ANSWER -True
,Which is the highest and best kind of estate an owner can have? - CORRECT ANSWER -
Fee simple absolute
Treatises are practice books published by state bar associations. True or False? - CORRECT
ANSWER -False
The rules on adverse possession - CORRECT ANSWER -vary from state to state.
No special language is required to create a fee simple absolute. True or False? - CORRECT
ANSWER -True
Soybeans produced by labor are considered real property. True or False? - CORRECT
ANSWER -False
The law of real property is generally governed by the - CORRECT ANSWER -law of the
state in which the real property is located.
An estate at will is restricted in its duration to a fixed period. True or False? - CORRECT
ANSWER -False
Life estates may be created by
deed will.
express agreement.
all of the answers are correct. - CORRECT ANSWER -All of the answers are correct
The transferor of real property is called a - CORRECT ANSWER -grantor
What kind of rights does an adjoining property owner to a river, stream, or natural lake have? -
CORRECT ANSWER -Beneficial rights
,A person can obtain title by adverse possession by camping in a state park for seven continuous
years. True or false? - CORRECT ANSWER -false
When a gift is complete, the gift is irrevocable. True or False? - CORRECT ANSWER -
true
Legal blogs are also called blawgs. true or false - CORRECT ANSWER -true
Most states interpret a conveyance without limitation as transferring a fee simple determinable to
the grantee. True or false? - CORRECT ANSWER -true
Rose bushes that grow in soil are considered real property. True or false? - CORRECT
ANSWER -true
mortgage loan - CORRECT ANSWER -Definition:Loan secured by real property.
Fannie Mae and Freddie Mac are privately owned corporations organized to provide a secondary
market for single-family and multifamily residential loans. True or false - CORRECT
ANSWER -true
What is the limit on the loan amount the VA will guarantee? - CORRECT ANSWER -25
percent of the loan amount
A graduated payment mortgage is a partially amortized loan. true or false - CORRECT
ANSWER -false
Commercial banks tend to keep mortgage loans in their portfolio through maturity. True or false
- CORRECT ANSWER -false
Depositors' accounts with commercial banks are insured by - CORRECT ANSWER -
FDIC
, Thrifts that survived the savings and loan collapse in the 1980s and 1990s were converted into
federal savings banks. true or false - CORRECT ANSWER -true
The primary market consists of lenders who originate mortgage loans for the purpose of selling
the loans to investors. true or false - CORRECT ANSWER -true
Mortgage banking companies originate mortgage loans for insurance companies, commercial
banks, pension funds, savings banks, and other investors. True or false - CORRECT
ANSWER -true
The monthly payments on a construction loan are amortized. true or false - CORRECT
ANSWER -false
The housing recession and mortgage crisis that started in 2007 caused an increased number of
loan defaults and financial solvency of banks. true or false - CORRECT ANSWER -true
In most cases, the Small Business Administration (SBA) - CORRECT ANSWER -
guarantees loans made by private lending institutions approved by the SBA.
In a straight-line amortized loan the payments become smaller as the loan matures. True or false
- CORRECT ANSWER -true
The secondary market consists of - CORRECT ANSWER -investors who purchase
mortgage loans
Fannie Mae is an example of a - CORRECT ANSWER -warehousing agency
Conduit lenders do NOT do which of the following? - CORRECT ANSWER -Hold
mortgages for the full term of repayment
